[wahsd]

I really think there is some other maybe even unidentified kind of mental issue going on with this kind of scam. I say that because I know of some people who are locked into the Iraqi dinar scam and simply cannot see what is going on in spite of being otherwise ostensibly smart and intelligent people. Maybe it's "greed" , but it seems to me that it's more of a vulnerability due to hopes and dreams not matching topic sophistication.

[simonw]

I think it's a couple of things.

The first is the sunk cost falacity / escalation of commitment ( https://en.wikipedia.org/wiki/Escalation_of_commitment ) - if you've already given the scammers $500, your choices are either to admit that you've been scammed and will never see that money again. The alternative is to convince yourself that you really are going to get the money (and you haven't been scammed) if you just send them a little bit more...

The second factor is that at a certain age most people begin to lose their judgement. You don't have to have full on dementia, just slightly less good judgement than you had when you were younger, in order to fall for on of these scams.

http://www.nytimes.com/2015/04/25/your-money/as-cognitivity-... - "As Cognition Slips, Financial Skills Are Often the First to Go". Interestingly, financially savvy people who actively manage their money are at a much higher risk of losing everything to bad decisions at an older age.

[JamesBarney]

I don't think it's greed. I think it's hope. Most of the people I know who fall for these scams are not any dumber or greedier than other people I know. They do seem to be much more optimistic and positive though.

Think if this same person has late stage cancer and believed they were gonna make it despite all odds it would be an inspiring lifetime movie. But unfortunately I think these are the same people who also believe that a Nigerian prince needs them to transfer some money before they will be handsomely rewarded against all odds.

[scrubby]

I agree. In my grandfather's case, he was keeping this all a secret because he wanted to surprise his family with financial help from his "windfall." Something I think he always wished he could do, but never had the money to do.

[JBReefer]

Man, that's incredibly heartbreaking.

[granos]

Socialism never took root in America because the poor see themselves not as an exploited proletariat, but as temporarily embarrassed millionaires. - John Steinbeck (disputed)

Lots of otherwise reasonable people are willing to delude themselves for a shot at a windfall.